BREAKING
Prompt Caching Cuts Claude Costs 90%
Three Steps to Cut Token Spend
1
Use prompt caching
↓
2
Keep prompts short
↓
3
Cap max_tokens
Cache Read Rate vs Normal Input
Cache read
0.1
Write 5-min
1.25
Write 1-hour
2
0
%
Max cost cut
0
%
Latency cut
0
$
Was per month
0
$
Now per month
When Caching Helps and Hurts
Best for
●
Large RAG contexts
●
Multi-turn agents
●
Repeated system prompts
Watch out
●
TTL miss adds premium
●
Prefix change voids cache
●
Thin gain in short chats
Manage TTL and Prefix Wisely
AI NEWS BLITZ
Three techniques can slash your Claude API token costs, led by prompt caching.